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QUESTION 10 8 points Save Answer The manager of the Beach Division of Treat Time is evaluating the acquisition of a new mobile ice cream
QUESTION 10 8 points Save Answer The manager of the Beach Division of Treat Time is evaluating the acquisition of a new mobile ice cream server. The budgeted operating income of the Beach Division is currently $2,940,000 with total assets of $28,600,000 and noninterest-bearing current liabilities of $600,000. The proposed investment would add $18,000 to operating income and would require an additional investment of $120,000. The required rate of return for the Beach Division is 9 percent. Ignoring taxes, how much is the return on investment of the Beach Division if the ice cream server is purchased? 10.52% O 15.00% O 10.56% O 12.75%
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